4. Skipping Uninsured and Underinsured Motorist Coverage
It sounds backwards to insure yourself against other people’s mistakes, but that is exactly what uninsured and underinsured motorist coverage does. Millions of drivers on the road either have no insurance at all or barely enough to meet minimum legal requirements. If one of them hits you and causes serious injury, this coverage is often the only thing standing between you and a mountain of medical bills, lost wages, and rehabilitation costs.
Some drivers decline this coverage to shave a few dollars off their monthly bill, not realizing how common uninsured drivers actually are in many areas. Skipping it is a gamble that rarely pays off, and when it does not pay off, the consequences can be financially devastating for years.
Quick tip: In many states, uninsured motorist rates hover between one in eight and one in five drivers, which means the odds of being hit by an uninsured driver are far higher than most people assume.